Fake bills on sale to fraud gangs

DOZENS of websites are selling fake utility bills, bank statements and other personal documents to fraudsters who steal people's identities - and the authorities are powerless to stop them.

Using just a few personal details from the victim, criminals - including terrorists - can order replica documents for a small fee.

They are used to get credit by applying for loans over the internet, buying mobile phones or taking out storecards. Victims rarely know that their identity has been stolen until the bills arrive.

While it is illegal to impersonate people for financial gain, the websites offering replica documents are operated by offshore companies and the prosecuting authorities are powerless to stop them trading.

Beverley Young of Cifas, a fraud advice service set up by the credit industry, said: 'It is hard to prevent criminals using the internet to find false documentation, which can then be used to steal people's identities.

'We can warn people about false documents, but the sophisticated techniques used by the fraudsters mean that in most cases we cannot stop them. The regulators are powerless, too.

'Identity theft is not a victimless crime. These fake documents can be easily used and accessed by terrorists. The proceeds of this type of crime might also go to funding terrorism as well as people trafficking and drug-dealing.'

Cifas said the replica documents looked authentic because the people operating many of the websites had bought up printing equipment that was used by the companies whose documents they fake.

Fraud investigating company CPP of York accessed one of these websites and paid £200 for false statements from British Gas, Barclaycard, Barclays bank and Revenue & Customs.

CPP spokesman Owen Roberts said: 'With just a handful of personal details, we went online and managed to buy at relatively small cost authentic-looking fake utility bills, bank and credit card statements and even mortgage details.

'This worrying development means that it is increasingly difficult for consumers to protect themselves against identity theft.'

One website with data centres in Panama City and Hong Kong claims: 'Using the latest production techniques and the best raw materials, we ensure that we produce high quality replica documents that fool the professionals.'

It adds: 'Let it be known that we do have some morals - our group does not support or encourage international terrorism.'

British Gas described the fraud as 'extremely disturbing'. Barclaycard said it was aware of the issue and was looking at ways to stop criminals faking its statements.

A spokesman said: 'We always investigate cases of this kind and pass them on to the police, but because these websites fall outside UK jurisdiction, action cannot be taken in cases of this kind.'

Cifas figures show that instances of identity theft rose by 13% in the first six months of the year compared with the same period last year. The Government has estimated that identity fraud costs the economy more than £1.3bn a year.